Power exchange for frequency control (PXFC)

This paper concerns markets for balancing power supply and demand in real-time. Two qualitatively different market mechanisms are of interest: (1) primary electricity market(s) for supplying anticipated demand, and (2) a frequency control market for ensuring that system frequency remains within prespecified limits as demand deviates in real-time from its anticipated pattern. We suggest that both types of markets are necessary for ensuring that frequency remains within its technically acceptable limits as power is provided competitively. In particular, we develop one possible structure of a power exchange for frequency control (PXFC) that ensures frequency quality in a general primary electricity market comprising both bilateral and spot sub-markets.